Laster City recorded a 20-year building rental agreement as a capital lease. An asset for the building lease was recorded in the general fixed assets account group. Where should the lease liability be reported?a. In the general long-term debt account groupb. In the debt service fundc. In the general fundd. A lease liability should not be reported.
Laster City recorded a 20-year building rental agreement as a capital lease. An asset for the building lease was recorded in the general fixed assets account group. Where should the lease liability be reported?a. In the general long-term debt account groupb. In the debt service fundc. In the general fundd. A lease liability should not be reported.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Laster City recorded a 20-year building rental agreement as a capital lease. An asset for the building lease was recorded in the general fixed assets account group. Where should the lease liability be reported?
a. In the general long-term debt account group
b. In the debt service fund
c. In the general fund
d. A lease liability should not be reported.
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